Forex Trading Weekly Forecast 01.28.2013
There was an unusual contrast this past week where the EURUSD advanced to its highest weekly close in 11 months at the same time that the Dow Jones FXCM Dollar Index (ticker = USDollar) ended the period at a 6-month high.
The Euro finished the week at fresh 10-month highs versus the US Dollar (ticker: USDOLLAR) as the US S&P 500 and broader risky assets surged, and current momentum suggests the Euro could test 2012 peaks near $1.35 in the days ahead.
With Shinzo Abe’s fingerprints all over the Bank of Japan, the Japanese Yen may have entered a perpetually bearish state, fundamentally speaking.
Gold took a tumble this past week as the dollar and S&P 500 posted complimentary rallies. Moving forward, traders will look to US date to measure risk trends and stimulus demand.
The Australian Dollar appears vulnerable as evidence of slowdown in the US weighs on risk appetite while Chinese PMI data fails to offer lasting support.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.